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NFA reminded member firms that January 31, 2020 is the effective date to be in compliance with swaps proficiency requirements. NFA posted the Swaps Proficiency Requirements online.
As previously covered, NFA amended (i) NFA Bylaw 301 and NFA Compliance Rule 2-24 and (ii) the Interpretive Notice titled NFA Bylaw 301 and Compliance Rule 2-24: Proficiency Requirements for Swap APs.
The amendments require that any individual who is engaged in swaps activities (whether registered as a swap firm intermediary or swap-associated person ("AP")), or who is simply acting as an AP of a swap dealer, satisfy these requirements.
According to the Interpretive Notice, any individual who is "approved as swap APs" at a futures commission merchant, introducing broker, CPO or CTA member firm, or who is acting as an AP at a swap dealer on January 31, 2021, must have met the swaps proficiency requirements in order to remain approved as a swap AP or continue as an AP at a swap dealer following this date.
These requirements do not apply to certain individuals acting outside the United States as APs to non-U.S. counterparties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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